Analyst Brief July 14, 2026

H.R. 2985 — Modernizing Government Technology Reform Act, as amended

Current Status

Moving under Suspension of the Rules

Executive Summary

H.R. 2985, the Modernizing Government Technology Reform Act, reauthorizes and reforms the Technology Modernization Fund (TMF) through 2032. It tightens congressional oversight by requiring agencies to reimburse the fund, tying disbursements to incremental, metric-based milestones, and mandating the suspension of funds for fraudulent project claims. Crucially, it forces the Federal CIO to maintain a top-10 prioritization list of the government's most high-risk legacy IT systems, shifting the TMF's focus back to its original congressional intent of retiring vulnerable, outdated tech rather than funding general IT wishlists.

Bill Data

Primary Sponsor

Ms. Mace (R-SC)

Bill Number

H.R. 2985

Session

119th

Co-Sponsors

Mr. Connolly
View on Congress.gov ↗

Arguments For

  • Fiscal Responsibility & Accountability: By mandating agency reimbursement and tying funds to incremental milestones, the bill prevents the TMF from becoming a slush fund and ensures taxpayer dollars yield actual IT improvements.
  • National Security & Cybersecurity: Forcing the Federal CIO to identify and target the top 10 most vulnerable legacy systems directly addresses critical cybersecurity blind spots that adversaries frequently exploit.
  • Bipartisan Good Government: Sponsored by Mace (R) and Connolly (D), this is a classic good-governance win that demonstrates Congress can function to modernize the bureaucracy.

Likely Supporters

Government IT contractorsCybersecurity firmsGood governance watchdogs

Arguments Against

  • Agency Burden: Strict reimbursement requirements may deter cash-strapped agencies from applying for TMF funds, defeating the purpose of the fund to jumpstart modernization.
  • Administrative Overhead: The new inventory and reporting mandates for Agency CIOs and the Federal CIO could slow down actual modernization efforts by bogging them down in compliance exercises.

Likely Opponents

Federal employee unions (potentially, due to strict accountability metrics)Certain agency heads (quiet opposition to strict reimbursement mandates)

📋 Key Provisions

  • Extends the Technology Modernization Fund (TMF) sunset date from September 30, 2026, to December 31, 2032.
  • Mandates that TMF transfers be made on an incremental basis tied to metric-based development milestones using rapid, iterative processes.
  • Requires the Federal CIO to compile and maintain a list of the 10 legacy IT systems presenting the greatest security, privacy, and operational risks to the Federal Government.
  • Directs the Administrator to suspend or terminate funding if an agency provides fraudulent or misleading statements regarding a project's technical design, business case, or management.
  • Requires agencies to fully reimburse the Fund to ensure its continued solvency and operational status, and prohibits funding for programs restricted or denied by Congress.
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Claim Analysis Page 15, Line 18

Extends the TMF sunset date to December 31, 2032.

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"cember 31, 2032”."

Claim Analysis Page 6, Line 24

Requires incremental funding tied to metric-based milestones.

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"on an incremental basis, tied"

Claim Analysis Page 12, Line 15

Mandates a top 10 list of high-risk legacy IT systems.

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"a list of 10 legacy infor-"

Claim Analysis Page 4, Line 6

Suspends funding for fraudulent or misleading statements.

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"the head of an agency provided fraudulent"